Short-Term Rental Regulations

## Portland STR Compliance Guide Portland, Oregon maintains one of the most strictly regulated short-term rental markets in the United States. The city permits only **Accessory Short-Term Rentals (ASTRs)** in residential zones, and hosts must maintain their property as a primary residence while renting it out. This comprehensive guide walks you through registration, taxation, operating restrictions, and enforcement requirements. --- ## 1. Registration & Licensing ### Permit Types Portland offers two ASTR permit types, each with distinct requirements: | Permit Type | Bedrooms | Max Guests | Conditional Use Review | Fee | |-------------|----------|-----------|----------------------|-----| | **Type A** | 1–2 | 5 overnight | No | $154 | | **Type B** | 3–5 | ~10 | Yes | Variable | ### Primary Residence Requirement (Critical) The **primary residence requirement** is the cornerstone of Portland's STR policy: - You must reside in your dwelling a **minimum of 270 days per calendar year** (approximately 9 months) - You are allowed to be away **maximum 95 days per year** for ASTR rental purposes - The city enforces this through **DMV residency verification** at application and renewal - Your Oregon driver's license or ID must show your STR property address - **Type A permits can only be used if you occupy the entire unit as your primary residence** Without meeting the 270-day occupancy requirement, you are ineligible for an ASTR permit. The city does not permit whole-home vacation rentals or investment properties in residential zones. ### Step-by-Step Registration Process **Step 1: Verify You Meet Primary Residence Requirements** Confirm your property meets the 270-day occupancy rule and that you plan to reside there personally. Document your Oregon driver's license showing the property address. **Step 2: Determine Your ASTR Type** - **Type A (1–2 bedrooms)**: Faster approval, $154 fee, no conditional use review - **Type B (3–5 bedrooms)**: Requires conditional use review, longer timeline, variable fees, more extensive neighborhood notification **Step 3: Prepare Neighborhood Notification** - Create a written notice letter using the city's standard template - Identify all neighborhood associations and district coalitions whose boundaries include your property - Mail or deliver notices to these organizations - Gather proof of notification (receipts, certified mail documentation) for your application **Step 4: Register as a Portland Business** - All ASTR operators must register with the City of Portland as a business - Hosts grossing less than **$50,000/year** (before expenses) are exempt from Business License Tax - The exemption still requires annual filing and declaration to remain valid **Step 5: Apply Online via Civic Portal** - Visit the [City of Portland Civic Portal](https://www.portland.gov/ppd/astr-permits/before-you-apply) - Create a free account with your email address - Provide your Oregon driver's license or ID number - Upload your neighborhood notification proof - Complete the guided application wizard with property details and rental plans **Step 6: City Review & Approval** - Portland Permitting & Development (PPD) reviews your application for completeness - If complete, you receive permit approval via email - If questions arise, the city contacts you with required details - **Response deadline**: Follow the city's specified timeframe (typically 10–15 business days) **Step 7: Renew Every 2 Years** - ASTR permits are valid for **2 years** from issuance - Submit renewal applications **before expiration** - Neighborhood notification is required again at renewal - After **6 years of continuous renewal**, your property must undergo re-inspection before further renewal eligibility **Contact for Registration:** - Email: PPDaccessoryshorttermrental@portlandoregon.gov - Phone: 503-823-2633 - Online: [Portland Permitting & Development](https://www.portland.gov/ppd/astr-permits) --- ## 2. Tax Obligations Portland imposes a tiered tax system on all short-term rental bookings. These taxes apply whether you list on platforms or accept direct bookings. ### Transient Lodging Tax Breakdown | Tax Level | Rate | Purpose | |-----------|------|---------| | **Portland City Tax** | 6% | 5% general fund + 1% Travel Portland | | **Multnomah County Tax** | 5.5% | County services | | **Combined City + County** | **11.5%** | — | | **Oregon State Tax** | 1.5% | State revenue | | **Total Overall Rate** | **~13%** | — | ### Additional Per-Night Fee In addition to the tax rates above, Portland charges a **$4/night per guest fee** that funds affordable housing and homelessness initiatives. This is calculated on top of taxes. ### Tax Collection Responsibility - **Platform Listings (Airbnb, VRBO)**: Platforms typically handle tax collection and remittance to Portland Revenue Office automatically - **Direct Bookings**: If you accept bookings directly from guests without a platform, **you are responsible** for collecting and remitting taxes to Portland Revenue Office - **Documentation**: Keep detailed records of all bookings, rates, taxes collected, and remittances for auditing purposes - **Annual Reporting**: File transient lodging tax returns according to Portland Revenue Office schedules ### Business Income Tax Rental income from your ASTR is taxable as business income on both your federal and Oregon state tax returns. Keep meticulous records of: - Gross rental income - Operating expenses (cleaning, utilities, maintenance, mortgage interest, property taxes, insurance) - Depreciation (if applicable) - Platform fees and transaction costs **Business License Tax Exemption**: Hosts with gross rental income below **$50,000/year** are exempt from Portland's Business License Tax, but must still file an annual exemption declaration. --- ## 3. Operating Restrictions ### Occupancy Rules (Strictly Enforced) **Primary Residence Requirement:** - Minimum **270 days/year** at your property (approximately 73% of the year) - Maximum **95 days/year** away from property (approximately 3 months) - City verifies via **DMV residency records** at application and renewal - Violation can result in permit revocation and significant fines **Rental Duration:** - All bookings must be **less than 30 consecutive days** per guest - Longer-term rentals are classified differently and do not qualify for ASTR permits - Guests checking in for 30+ days violate your permit conditions ### Type A Restrictions (1–2 Bedrooms) - **Bedrooms**: Limited to 1–2 bedrooms maximum - **Guests**: Maximum 5 overnight guests per booking - **Property Use**: Entire unit must be your primary residence (no separate accessory dwelling) - **Approval**: No conditional use review required; faster approval timeline - **Cost**: $154 application fee ### Type B Restrictions (3–5 Bedrooms) - **Bedrooms**: Allows 3–5 bedrooms - **Guests**: Approximately 10 overnight guests (per conditional use review) - **Conditional Use Review**: Required; longer approval process; more extensive neighborhood notification - **Approval**: Subject to public hearing and city discretion - **Cost**: Variable fees depending on complexity and review duration ### Neighborhood Notification Requirements Before approval, you must notify: - All neighborhood associations within your property's boundaries - All district coalitions whose boundaries include your property - Standard notification letter template is available from the city - **Renewal**: Neighborhood notification is required again when renewing your permit every 2 years - Neighbors may submit written opposition during public review periods ### Zoning Limitations - **ASTR only** is permitted in residential zones (whole-home vacation rentals are banned) - You must occupy the unit as your **primary residence**; absentee or investor ownership is not permitted - Properties in zones without accessory use allowances do not qualify - Check your property's zoning designation before applying --- ## 4. Safety Requirements Portland requires rigorous safety inspections before permit issuance. All hazards must be corrected before guests occupy your property. ### Carbon Monoxide Detectors (Critical) This is the most important safety requirement: - **Mandatory**: Each bedroom rented to overnight guests must have a functioning carbon monoxide detector - **Placement**: Detectors must be installed in each bedroom OR within 15 feet outside the bedroom door - **Inspection**: Housing inspectors will verify carbon monoxide detectors during the rental inspection - **Permit Status**: Permits are **not issued** until detectors pass inspection - **Maintenance**: You are responsible for maintaining working detectors throughout the permit period ### Smoke & Carbon Monoxide Integration - **Interconnected detectors** are recommended (smoke and CO detectors working together) - All imminent safety hazards identified during inspection must be corrected before permit issuance - All imminent safety hazards must be corrected before allowing any guest occupancy ### Building Code Compliance - Properties must meet **applicable building codes** for residential occupancy - City housing inspectors focus on **imminent safety hazards** during the STR rental inspection - General building code compliance is not verified by the city during the rental inspection process - You are responsible for ensuring your property meets all applicable codes ### Common Inspection Issues Address these common problems before scheduling your inspection: - Non-functioning or missing carbon monoxide detectors - Non-functioning or missing smoke detectors - Electrical hazards (frayed cords, overloaded outlets, exposed wiring) - Structural hazards (loose railings, broken stairs, damaged floors) - Water/moisture damage or mold - Blocked egress windows or emergency exits --- ## 5. Insurance Requirements Portland does **not mandate** specific insurance coverage for ASTR operators in its permit requirements. However, insurance considerations are critical: ### Standard Homeowner's Insurance Limitations - Most standard homeowner's insurance policies **do not cover** short-term rental activity - Renting out your home may violate your existing policy terms - **Contact your insurer immediately** to clarify coverage and restrictions ### Insurance Options 1. **Rider/Endorsement**: Add a short-term rental rider to your existing homeowner's policy (often $200–$500/year) 2. **Commercial Policy**: Purchase a separate short-term rental or landlord insurance policy ($800–$2,000+/year) 3. **Platform Coverage**: Airbnb and VRBO offer limited host protection, but this is not a substitute for proper insurance ### Recommended Coverage - Liability protection (guest injuries, property damage) - Loss of use (if you need to cancel bookings due to property damage) - Liability for guest belongings - Host protection against vandalism and theft **Best practice**: Consult with an insurance agent who specializes in short-term rental coverage to ensure adequate protection. --- ## 6. Fines & Penalties Portland enforces STR compliance aggressively through a dedicated code enforcement team. Violations carry steep penalties and escalate quickly. | Violation | Fine | Details | |-----------|------|---------| | **Operating without valid ASTR permit** | $500–$1,500 | First violation + escalates per violation tier | | **Violating 270-day primary residence requirement** | Monthly enforcement fee (varies) | Penalties accumulate per violation; may trigger permit revocation | | **Failure to cure violations within 30 days** | $1,000+ | Second violation doubles; pattern of violations leads to revocation | | **Exceeding 95 days away per year** | Permit revocation + enforcement | Strict enforcement via DMV verification | | **Neighborhood notice violation** | Permit denial or revocation | Failure to properly notify neighbors prevents approval | | **Carbon monoxide/smoke detector violation** | Permit not issued | Cannot operate until corrected; safety critical | | **Unpermitted ASTR operation** | $500–$1,500 per day | Civil and criminal penalties possible | | **Violation after 6-month warning** | Doubled fines + escalation | Pattern enforcement; cumulative violations trigger revocation | ### Enforcement Process 1. **Complaint Filed**: City receives complaint via code enforcement hotline or online portal 2. **Investigation**: STR code enforcement team investigates within 10–15 business days 3. **Notice of Violation**: If violation confirmed, city sends formal notice with 30-day cure period 4. **Cure Window**: You have 30 days to correct the violation 5. **Second Notice**: If not corrected, second violation incurs doubled fines 6. **Revocation**: Pattern of violations (3+) can result in permanent permit revocation ### Cumulative Violation Tracking Portland tracks violations cumulatively. A single violation does not result in immediate revocation, but: - Multiple violations within a short period escalate penalties - Pattern of non-compliance triggers administrative review - Permit revocation is possible after 3 sustained violations - Revoked permits cannot be reapplied for **one year minimum** --- ## 7. Platform vs Host Responsibilities ### What Platforms Handle **Airbnb, VRBO, and similar platforms typically:** - Collect transient lodging taxes from guests at checkout - Remit taxes to Portland Revenue Office on behalf of hosts - Provide year-end tax reporting (1099-NEC forms for US hosts) - Process refunds and guest disputes - Provide liability protection under their host protection program ### What You (The Host) Must Handle **You are responsible for:** - Maintaining an active, valid ASTR permit - Renewing your permit every 2 years before expiration - Complying with the 270-day primary residence requirement - Maintaining working carbon monoxide and smoke detectors - Properly notifying neighbors at application and renewal - Maintaining business registration with Portland - Reporting rental income on your tax return - Maintaining adequate insurance coverage - Responding to city inquiries within specified timeframes - Correcting any code violations within 30 days - Ensuring guest compliance with 30-day maximum stay limit ### Direct Bookings (Non-Platform) If you accept bookings directly from guests (not via platform): - **You must collect** transient lodging taxes from guests - **You must remit** taxes to Portland Revenue Office - **You are responsible** for all tax documentation and filing - You lose platform liability protection; purchase separate insurance - Tax compliance is entirely your responsibility --- ## 8. Key Deadlines & Official Resources ### Critical Deadlines | Deadline | Action | Consequence if Missed | |----------|--------|----------------------| | **Before first booking** | Obtain valid ASTR permit | Operating without permit: $500–$1,500 fine per day | | **Every 2 years before expiration** | Renew ASTR permit | Permit revocation; must stop renting immediately | | **At neighborhood notification** | Send notices before application | Permit denial or revocation | | **At annual filing (if exempt)** | Declare Business License Tax exemption | Tax liability; back taxes + penalties | | **Within 30 days of violation notice** | Correct reported violation | Doubled fines; escalation to revocation | | **Before guest checkout** | Ensure safety compliance** | Permit not issued; guest safety hazard | ### Official Links & Resources **Portland Permitting & Development (PPD):** - Main ASTR Page: https://www.portland.gov/ppd/astr-permits - Type A Permits (1–2 Bedrooms): https://www.portland.gov/ppd/astr-permits/1-2-bedrooms-type-permits - Before You Apply: https://www.portland.gov/ppd/astr-permits/before-you-apply - Civic Portal (Online Application): https://www.portland.gov/ppd/astr-permits/before-you-apply **Tax & Revenue:** - Transient Lodging Tax: https://www.portland.gov/revenue/transient-lodgings-tax - Business License Tax: https://www.portland.gov/revenue/business-license **Enforcement & Compliance:** - Code Enforcement Hotline: https://www.portland.gov/ppd/code-enforcement - Report Violations: https://www.portland.gov/ppd/code-enforcement - Portland STR Public Registry: https://www.portlandmaps.com/reports/ **Direct Contact:** - Email: PPDaccessoryshorttermrental@portlandoregon.gov - Phone: 503-823-2633 - Hours: Monday–Friday, 8:00 AM–5:00 PM PT ### Renewal Reminders Set calendar reminders for: - **6 months before permit expiration**: Begin renewal process - **2 months before expiration**: Submit renewal application - **1 month before expiration**: Follow up with city if not yet approved - **Before expiration**: Confirm renewal approval and updated permit in hand ### Staying Informed - Subscribe to Portland's city email alerts for STR regulation updates - Check the Bureau of Planning & Sustainability website quarterly for policy changes - Join neighborhood associations to stay informed about STR discussions - Consult with local STR consultants or attorneys for questions about your specific property --- ## Summary: Quick Compliance Checklist Before operating your Portland ASTR: - [ ] Confirm you can maintain **270+ days/year** primary residence requirement - [ ] Determine if your property qualifies as **Type A (1–2 BR)** or **Type B (3–5 BR)** - [ ] Prepare **neighborhood notification letters** and proof of delivery - [ ] Register as a **Portland business** - [ ] Verify **carbon monoxide and smoke detectors** are functioning - [ ] Apply for **ASTR permit** via Civic Portal - [ ] Receive **permit approval** from city - [ ] Contact insurance provider about **STR coverage** or rider - [ ] Set up **tax remittance** if accepting direct bookings - [ ] Schedule calendar reminders for **permit renewal** (every 2 years) ---